First of all,we will analyze,What is the bitcoin ? Everything You Need To Know about it !
Bitcoin is a cryptocurrency and digital payment system which is invented by unknown programmer or community of programmers under the name of Satoshi Nakamoto.It was realise in 2009,Since the Bitcoin's entire system work without any administrator,It is consider as first decentralized currency.
Bitcoin system work as peer-to-peer,It means transaction made directly to the user without middleman,These tansaction are secure by Network nodes (or in usual language "Servers") and recorded by public distributed database called a "Blockchain".
Where To Buy/Sell Bitcoin ?
You can Buy a Bitcoin from several website as decribed below,Every site has their pros and cons,it also described below.
1.CoinBase :- it is the most popular and most reputable bitcoin exchanges platform.Coinbase is popular among fans of the ‘dollar cost averaging’ method, where users can automate bitcoin purchase every week or month.
Pro: Reputation as a dependable bitcoin exchange
Con: You perform dubious activities. This company monitors transactions for suspicious activities and may close accounts anytime.
2.LocalBitcoins :- It can be described as less of an exchange and more as a platform where individual bitcoin buyers and sellers from all over the world can find each other. You will be directed to a country-specific page and will be able to pick who you want to buy/sell bitcoins from. The in-built escrow system will protect both parties until the seller releases it after confirmation of payment.
Pro: Trading directly from individuals
Con: You don’t want to be exposed to scammers. There are some in this platform who may provide fake bank transactions. In-person buying/selling can be dangerous as well.
3.Kraken :- A trading-focused bitcoin service provider, Kraken appeals to bitcoin traders as you can leverage and even short on the platform. They are very reputable and was one of the first bitcoin exchanges to pass an independent audit.
Pro : It is the best platform for Traders.
Con : You don’t know how to setup 2-factor authentication (2FA). Entire accounts have been drained when customers fail to set this up.
For India :
1.Zebpay : It is the most widely use and reputed bitcoin exchange platform in india.So,it is a good choice to start with zebpay,it will answer the all your questions about bitcoin.Recently,ZebPay announced that they are getting daily 2500+ sign ups.
2.Unocoin : According their co-founder,they offer an easy to use bitcoin wallet, offer buy/sell services along with merchant services. Unocoin has more than 100,000 users and is backed by:
⦁ Digital Currency Group (Barry Silbert)
⦁ Boost.VC (Adam and Tim Draper)
⦁ Blume Ventures: Karthik Reddy & Sanjay Nath
⦁ Mumbai Angels (the most prominent angel investor networks in India)
⦁ FundersClub (an early investor in Coinbase)
⦁ Bank to the Future (Max Keiser)
⦁ ah Ventures
Is it rational to invest in bitcoin ?
When you talk about investment, there's always a risk factor attached to it. What if share market crash tomorrow, what if gold price goes down and there are so many ifs and buts.
"High risk, high reward" is one of the fundamental principles of investment.
Bitcoin is not a safe investment, but it has given 296.5% return in 1 year. No bank deposit, mutual fund or stock will give this much return, 10–20% is considered as good return. Here we are talking almost 300% in a year!
You should consider Bitcoin as an investment option.
Why Bitcoin price is rising?
To answer this question, we need to understand ‘how bitcoins are created.’
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
The Bitcoin protocol is designed in such a way that new bitcoins are created at a fixed rate. This makes Bitcoin mining a very competitive business. When more miners join the network, it becomes increasingly difficult to make a profit and miners must seek efficiency to cut their operating costs. No central authority or developer has any power to control or manipulate the system to increase their profits. Every Bitcoin node in the world will reject anything that does not comply with the rules it expects the system to follow.
Bitcoins are created at a decreasing and predictable rate. The number of new bitcoins created each year is automatically halved over time until bitcoin issuance halts completely with a total of 21 million bitcoins in existence. At this point, Bitcoin miners will probably be supported exclusively by numerous small transaction fees.
Read the last paragraph again. It is evident; one cannot create unlimited bitcoins whenever they want, there are 21 million bitcoins in existence out of which 16.3 M is in circulation.
The population of USA alone is U321.4 M(2015), suppose 1/4 population of USA suddenly gets excited about bitcoin and wants to own 1 BTC. Since there are only 16M BTC in the market, and more than 80M people want it, by “high demand, low supply” the price will rise.
With increase acceptance, (recently, Japan recognized BTC as a legal currency) price will increase further.
According to some news ,"India will be the next country to make BTC legal currency"
In my opinion, the price will only go up from here.
Here is the video for newbie to cryptographic currency :-
I hope this post has answer to the all your question concerning to bitcoin.
KIND REGARDS !